APL Apollo tubes (APT) reported its Q2FY19 numbers which came in below our expectations. Net revenue grew at a healthy pace of 25.7% YoY on the back of 14-15% increase in realizations and a muted volume growth of 7% YoY. The operating profit disappointed registering a degrowth of 8.7% YoY due to lower share of high margin products. Poor operational performance, lower other income and higher interest cost impacted profitability as net profit declined 34.4% YoY.